Dermot O’Leary: Europe can help Ireland by being less rigid on orthodoxy
When the facts change, I change my mind. What do you do, sir? This is the now infamous reply given by John Maynard Keynes when asked to explain his flip-flopping on his views on fundamental issues regarding the United States' Great Depression.
The IMF appears to have developed the courage to do a U-turn on its views on the effects of fiscal austerity during the current Great Recession -- based on new analysis in its latest World Economic Outlook.
This change of heart has opened up a huge debate on the correct policy response for the European sovereign debt crisis. The conclusion of this debate will have an important bearing on the growth trajectory of the euro area and, indeed, the global economy over the coming years.